Daily Plan 2.2.24
Hey folks -
Support in the Emini market came in at the level I shared in the chat below in the AM. In fact this was the low of the cash session.
Overnight and first 2 hours of the session, the upper level shared by me last night was the resistance before giving up and becoming support for rest of the day.
The action for most part was driven by the extremely robust earnings in META and AMZN. These 2 gapped up after hours by about 15 and 8% respectively.
AAPL earnings while saw revenue grow for the first time in a year, was lackluster due to demand worries from China. The company made $2.18 per share, versus an expectation of $2.11 by the analysts. However the revenue of China came out at 20.8 billion dollars versus an exception of $23.5 billion.
That stock sold down about 3% after hours. While I think AAPL earnings were more of the substance than the others, it was largely ignored by the general markets.
In the Substack, I have been an AMZN and META bull for several months now. See below.
Levels for tomorrow
As far as levels go, this situation is similar to the one we had early on in the week before post FOMC swoon.
SPX has made a new high but the tech index has slightly been behind. This means on the NQ side, it has been lagging a bit behind Emini ES.
I think for this market to take off from here, this situation needs to be resolved and these 2 markets need to converge.
It all comes down to the action in AAPL tomorrow. I think 180 will be a much closely watched level, and if this holds, we could see further gains in the SPX and as well as QQQ.
Scenario 1: 4963 could be an important level on the upside. We last traded around 4955 on the emini index. If 4963 holds as resistance, we could sell down into 4922-4930.
Scenario 2: A break of 4922 could target 4907-4910.
If there is a major move due to the FOMC, I may send out an update via chat before session open.
To summarize: If overnight, AAPL pre market loses are eased, and we open at or above 183, I think this could be supportive of the general market. We are down 3% at the moment. If these losses grow at the open, I think this one stock could rain on the bullish parade.
~ tic
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